[ad_1]
Gold prices climbed on Monday, supported in part by lower yields on government bonds and the US dollar, which increased the attractiveness of the precious commodity.
But the yellow metal may also have garnered additional interest after a public filing that offered insight into Warren Buffett’s Berkshire Hathaway Inc. BRK.A holdings,
BRK.B,
revealed that the conglomerate took a new stake in the last quarter in the world’s second largest gold miner, Barrick Gold Corp. BLK,
Lily: Did Warren Buffett just bet against the US economy? His latest investment raises some questions
Gold came under pressure last week as US Treasuries hit an eight-week high, which hurt bullion’s appeal. However, gold lovers insist that uncertainty over the economic landscape favored by the COVID-19 pandemic makes bullion a solid long-term bet, especially as countries spend trillions to support their savings.
On Monday, T-bill yields fell, with the 10-year T-bill rate TMUBMUSD10Y,
at 0.69% and a gauge of the US dollar against half a dozen currencies, the ICE US Dollar Index DXY,
0.1%. Gold enjoys lower yields because it does not offer a coupon, and a weaker dollar can make bullion more attractive to users of other currencies.
Some experts view the recent pullback in gold and silver after a recent powerful uptrend as a consolidation ahead of its next phase. Gold suffered a sharp pullback on Tuesday which helped break a weekly winning streak.
“We will have a new bullish signal with a clear breakout of $ 1,965, in a scenario that remains dominated by coronavirus news and fears of further lockdowns,” Carlo Alberto De Casa, chief analyst at ActivTrades wrote in a note. “Expectations for further central bank actions are still present and this is another element of support for gold. A further decline below the $ 1,920 to $ 1,930 support zone would indicate weakness. “
Indeed, the People’s Bank of China injected new liquidity into its financial system on Monday while keeping the rate stable at 2.95% on a one-year medium-term loan facility of $ 100.74 billion while dealing with the effects of the viral outbreak, Reuters reported.
December or GCZ20,
GC00,
rose $ 14.10, or 0.7%, to $ 1,963.90 an ounce after the metal posted a weekly decline of around 3.9% on Friday, underscored last Tuesday by the largest daily drop in the dollar since April 15, 2013.
Meanwhile, the September SIU20 silver prices,
rose 94 cents, or 3.6%, to $ 27,030 an ounce after a weekly loss of 5.3%.
[ad_2]
Source link